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Abstract

The aim of this study focuses solely on the customer’s perceptions of the m-commerce environment, rather than on trust in intermediaries or in third parties that might mediate between the customer and the store. The focus is on development of a framework to explain mcommerce acceptance in consumers’ decision-making process. The chapter further extends the technology acceptance model (TAM) in mobile commerce, particularly in the context of the consumer’s confidence level in the buying decision making process, rather than only focusing on the users’ acceptance of technology. The chapter provides a theoretical framework for mcommerce adoption and also suggests the importantrelationships between psychological and behavioral factors in the consumer decision-making process.

Background

The m-commerce environment is more uncertain and riskier than the traditional retail environment. Since the transactions can take place without personal contact, customers are generally concerned with the legitimacy of the vendor and authenticity of the products or services. Thus, buying confidence and trust over the mobile network or Internet are major concerns. Consumer’s confidence has been identified as a construct that is critical for the success of m-commerce (Steele & Tao, 2006; Tao & Steele, 2006; Torkzadeh & Dhillon, 2002), because without it, customers will not use the vendor’s technology application and do business with the online mobile vendors (Reichheld & Schefter, 2000). Therefore, it is important that online mobile businesses recognize that developing customer’s confidence is a key to success in m-commerce environments. As such, mobile business should continually analyze how to develop customer’s confidence (Tao & Steele, 2006).

M-commerce is an extension of e-commerce. In terms of e-commerce, mobile commerce often refers to the business to consumer (B2C) model (Wong, Rubasinghe, & Steele, 2005b). In particular, Louis (2001) classified mobile B2C to include the following characteristics:

Key Terms in this Chapter

Institution-Based Confidence: The concept of institution-based confidence proposed by McKnight et al. (2002) represents the beliefs held by customers about impersonal structures and favorable conditions, in which they feel safe, assured, and comfortable with the prospect of depending on the business.

Personality-Based Confidence: Personality-based confidence is defined as the extent to which one displays a consistent tendency to be willing to depend on others across a broad spectrum of situations and persons.

History-Based Confidence: History-based confidence (also known as knowledge-based confidence) is based on the development of the predictability of the other party through knowing the other sufficiently well that their behavior is predictable.

Mobile Commerce (m-commerce): M-commerce is an extension of e-commerce. In terms of e-commerce, mobile commerce often refers to the business to consumer (B2C) model.

Structural Assurances: Structural assurances or structural safeguards refer to an assessment of success due to structures such as legal recourse, guarantees, regulations, or other procedures that exist in a specific context.

Technology Acceptance Model (TAM): The TAM is an information systems theory that models how users come to accept and use a technology. The TAM was first introduced by Davis et al. in 1986 (Davis, 1989). The model provides a traditional view point about technology acceptance from users’ aspects.